John Howard

Hi

Just a quick word of warning/advice to all people migrating to Sydney and expecting the big house near the beach with the swimming pool

Have been here now for nearly 2 years, and i love it It makes it a bit easier for me as my wife is an aussie. We currently live in Randwick (which is in the Eastern suburbs) very close to a place called the spot. We rent a 2 bedroom unit its an old art deco style unit so is really the same size as a terrace 2 bed house. We are not idiots and fully understand the sydney housing market, but a similar unit went up for auction a few weeks ago. It had been fully renovated etc etc no garage or off road parking. It sold for $570,000 :scared: at a rate of 2.4 thats 237,500 GBP for a 2 bed unit people.

My wife and i earn i combined annual $140,000ish we both travelled extensivly before meeting and during our relationship. We lived together in the UK for around 4 years. We didnt buy a house so did not have a great deal of money to bring back to Oz. We are both more than happy with the choices we have made and wouldnt change them for the world.

We are starting the family thing quite late in life as we are in our 30's and have made a very hard desicion to forgo the house/unit and try and start a family. It would be impossible to pay a mortgage on one wage and very hard on two. eg $500,000 mortgage 20% deposit =$100,000 weekly repayments of around $800 Sydney median house price is around the $500,000 although if you wanted a 2 bed terrace were i live it would cost around $750,000

Therefore we have decided to keep saving as we are now and invest and not worry or beat ourselves up regarding never owning our own house, as we both agree happiness is more than a house

sorry to ramble

Pete

PS All the people who want to say, buy in a cheap area etc etc Dont want to as want to like were i live and have a good livestyle and be happy. Dont want to live in an a area i dont like in the middle of nowhere or crime infested etc and also be in heaps of debt.

Storini

Do you think there is or will be a pending "correction" in the market, and by how much? Is the situation sustainable?

Flutterscutter

We will be in a similar situation to you guys IF Mr Flutter decides to take the Sydney job insead of central coast.
I have to say i am really excited at the thought of living in Sydney itself. I was born and raised in the city, and over the last year or so realised my earlier yearning to live in the "countryside" just doesnt work for me. I need the 24hr buzz of city life.
There is no way on earth we could afford a house in central Sydney, but the more i have thought about it, i reckon i'd much rather rent than buy if it means my quality of life is better.

hubbard

Cost of housing seems to be main reason people don't opt for Sydney. Majority of expats heading to Oz want the large house, pool, and near beach - and in Sydney you would probably need to lay your hands on upwards of $2 million for this. We have budgeted $1 mill for a 3 - 4 bed house in reasonable area, commutable to CBD - definitely no pool and no sea view.

I don't think the housing market will lower loads in Sydney anymore than it will in London - probably stay pretty much where it is.

Vash the Stampede

You can have all of these things without spending large amounts of money on a house. Australia has plenty of affordable houses in nice areas which aren't "crime infested" or "in the middle of nowhere." You just have to be realistic.

What about the Adelaide hills in South Australia? What about Ferndale, Willeton, or Ocean Reef in Western Australia? Plenty of alternatives out there; you just have to look for 'em.

As for your complaint about "Sydney housing" - well, seeing as it's the most expensive place to live in Australia (and the largest population centre) what did you expect?

Five acre blocks at ten a penny, perhaps?

Vash the Stampede

Don't believe the hype, but... click here and you'll see it's not too shabby.

Alternatively:

Click here.

Looks alright to me; and for the price of a bog standard 2-bed terrace in the Midlands, which would probably come with a streetful of chavs on your doorstep!

John Howard

would be great but these are 1 bedroom apartments

Have you ever been to Adelaide? Its a great place don't get me wrong, but living there is not for me. Its a big country town with a couple of high rise office blocks and if you dont work in the Automotive industry work could be difficult. Same for Western Oz great spots but you still have to work!

ABCDiamond

My own experience of the Sydney market (Western Suburbs part), and possible future movements.

11/2001 - I bought a 5 bed house for $280k (bank value $270k)
12/2002 - it was bank valued at $380k (same bank valuer)
4/2004 - valued by Real Estate agent at $485k
(Placed on market thinking - "my lucky day") Funny thing was it didn't sell !!
Agent advised trying it at $435k, we took it off the agent.

2004 - NSW government introduced TWO penalty taxes on property investors, and the market dropped.
1/2005 - it was bank valued at $380k (again) (same bank valuer)

7/2005- NSW Government has now backflipped on both of those taxes... what will happen now ?

Property Investors will return to the NSW market, and try to buy up the cheap properties now being sold by the investors who wouldn't sell before due to the consequence of the Investors tax (About $10,000 Extra tax in my situation).

But will they push prices up again, or are there sufficient properties in the market to absorb this possible demand ?

Vash the Stampede

Sorry, I was under the impression that you didn't have kids yet.

Yep, I've been to both Adelaide and Western Australia; can't see much wrong with either of them, and I'd hardly refer to Adelaide as "a big country town with a couple of office blocks." (And if I'd did, I'd consider it part of the attraction!)

SA's economy is built on a lot more than just the auto industry; matter of fact that's changed quite a bit over the years, what with Mitsubishi pulling out.

Plenty of work in Western Australia, too; certainly was when I lived there a couple of years ago - and my 25-hour-a-week government job paid as much as my 38-hour-a-week private sector job pays over here in the UK! :scared:

I get the impression that you just want to be in a big place with billions of people all crammed in around you, too much traffic, no greenery, no room to move, no wide open spaces, little else but concrete and tarmac, and no privacy to speak of (UK lifestyle, in other words.)

But hey, if that's what works for you then go for Sydney by all means; just remember that it's going to cost ya!

Megalania

Until the end of the 1970's, Sydney was a "big country town". From that time it progressively "Manhattanized".

Housing has appeared expensive to the average Sydney inhabitant from at least the 1930's.

Inner city housing not only costs a lot per m^2 but the rooms tend to be too small for comfortable living.

A few will find they have skills which are well paid in Sydney but most will not and may be seduced into consumer frivolity and bled dry.

I abhor going there these days - for me it is just a collection of grubby buildings and shabby roads with little of interest.

webgum

If you're planning a family its pretty pointless buying a one bedroom place!!!!!

Why isn't this poster allowed to like Sydney and want to live there. Its not a failure to like a place you know. He is allowed to have a moan and be frustrated. Live him alone!!!

John Howard

Thanks, i love living in sydney and i can understand Vash's comments as i would be as negative and argumentative as him if a lived in WEST BROM

bondipom

When you consider the average first time buyers mortgage in sydney is 218000 then you realise the market is way to pumped up for its own god with or without a vendors tax. The abolition of the vendors tax has just increased the number of vendors with unrealistic ideas of selling prices.

Our options in Sydney are very limited. Most people in Sydney live out west where I'd rather not live. I am not overly bothered about renting as it means the landlord is subsidising us at the moment. Another sign the housing market is overbloated.

Vash the Stampede

He didn't say when he was planning to start a family - and since he's currently living in a 2 bedroom apartment, I didn't get the impression that he was starting one any time soon.

Of course he's allowed to like Sydney and want to live there; nobody's saying that this is "a failure", and nobody's having a go at him.

I was simply bemused by (1) the fact that having moved to Sydney, he now wants to complain about it and "warn" everyone else that it's expensive (what, like we didn't know?) and (2) his disclaimer, which seems somewhat at odds with his original complaint:

Vash the Stampede

Negatiive and argumentative? Geeze, I can hardly see your shoulder for the chip!

Yeah, West Brom isn't the greatest - but it'll do me alright for a while.

As an Aussie, I must admit I am accustomed to better - and I do miss my investment property back home from time to time.

But my current situation helps me relate to the Poms; at least I now understand why so many of you are desperate to leave!